Almonty's Korean Mill Springs to Life as a 21-Year Tungsten Contract Bolsters the Balance Sheet
Published on 08/22/2026 at 10:50 | Redaktion boerse-global.de
The transition from developer to producer is rarely a single moment, but for Almonty Industries it arrived on Thursday when the processing plant at its Sangdong mine in South Korea began feeding a 139,700-tonne ore stockpile — grading 0.25 percent tungsten trioxide — through the newly commissioned mill. The move shifts the company's profile decisively: no longer a project story, but an operating miner with immediate revenue relevance.
That operational milestone lands alongside a renegotiated offtake agreement that extends Almonty's relationship with Global Tungsten & Powders LLC to 21 years, a six-year extension that also carries 40 percent more contracted volume and roughly 6.3 percent improved pricing. For a producer looking to lock in demand visibility, the timing is fortuitous — tungsten prices have been hovering at elevated levels, and CEO Lewis Black has been candid about the supply constraints building across the market, from strategic stockpile depletion to semiconductor shortages and the widening gap between announced projects and actual output.
The Numbers Behind the Narrative
The second-quarter results, published on August 11, underscore just how far the financial picture has shifted. Revenue surged 498 percent year over year to 43.0 million Canadian dollars, propelled by a tungsten price that climbed from roughly 453 US dollars to approximately 3,075 US dollars per MTU. Net income swung to a profit of 181.8 million Canadian dollars against a year-earlier loss of 58.2 million, though a substantial portion — about 173.1 million Canadian dollars — came from non-cash valuation gains on derivatives and warrants. Adjusted EBITDA reached 17.6 million Canadian dollars, and earnings per share of 0.62 Canadian dollars blew past the consensus estimate of 0.10, even as revenue came in slightly shy of the 45.7 million US dollars analysts had penciled in.
Should investors sell immediately? Or is it worth buying Almonty?
That earnings beat reflects a balance sheet that has been transformed in short order. The oversubscribed placement of convertible notes — 800 million US dollars at 2.25 percent interest, maturing in 2031 and closed on June 9 — left the company with roughly 1.23 billion Canadian dollars in cash by June 30. Management has since put that liquidity to work, retiring the KfW loan in full and launching a buyback program of up to 300 million US dollars, targeting as many as 14.4 million shares, or about 5 percent of outstanding capital, over a 36-month window.
A Buyback, a Delisting, and a Structural Pivot
The repurchase plan stems from a conviction that the market is underpricing Almonty's tungsten assets, particularly with Sangdong's processing capacity now coming online to serve AI-driven demand. The timing, however, has been awkward: since the KfW repayment roughly a month ago, the stock has shed about 21.3 percent. The expanded offtake agreement offers a fundamental counterweight to that share-price softness, anchoring long-term offtake at improved terms irrespective of near-term market swings.
Structural changes are also underway on the listing front. Almonty was delisted from the Toronto Stock Exchange at the close of trading on July 31, and a voluntary delisting from the ASX is in motion — the CDIs, which represented only about 0.80 percent of outstanding shares, will cease trading on August 28, with full delisting slated for September 1. The company is consolidating its market presence on the Nasdaq, a move reinforced by its late-June inclusion in the Russell 1000 and Russell 3000 indices.
What emerges is a company in the middle of a deliberate repositioning: operationally, it has crossed the threshold into production at one of the most significant tungsten deposits outside China; financially, it carries a war chest that has already funded debt repayment and a substantial buyback; and structurally, it is streamlining its exchange footprint. Whether the Sangdong ramp-up translates into sustained revenue and earnings growth is the question the coming quarters will answer.
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